Information for International Accredited Investors
OverviewInvestment philosophy
The BullionGold Facility
Platform
Online Functionality
International Distribution for Accredited Investors
Overview
SA Bullion Investor Services (Pty) Ltd is the retail investment division of the SA Bullion group. It is designed to cater for South African investors and financial advisors, and International Accredited Investors who wish to invest in physical gold bullion. The firm offers it’s unique and proprietary product - The BullionGold Facility. The company maintains the necessary Financial Service Provider (FSP) licensing that permits it to engage in investment business with public investors. The company operates in conjunction with its parent company, SA Bullion Management (Pty) Ltd, which company is the holder of a special dispensation granted by the South African Reserve Bank, and a management agreement with Rand Refinery Limited. Accredited investors (non-South African) serve as intermediaries for the delivery of The BullionGold Facility to offshore investors.
Investment philosophy
Through The BulllionGold Facility clients obtain direct title-ownership of gold bullion at gold industry wholesale prices. This means low acquisition costs, low administrative costs and complete security. BullionGold Facility holders are not investing in a gold derivative or exchange traded fund (commonly known as paper gold). They are investing in gold bullion in their own name. They are therefore not exposed to the credit risk of a paper gold issuer nor is there any stock market risk involved. Physical gold ownership is a unique investment as it is the only financial investment that is no one else’s liability (and therefore cannot go broke). Our view is that gold should be viewed as a form of currency – and at a time when all paper currencies are being debased – it is the ultimate currency and should form a component of any portfolio.
The BullionGold Facility
The BullionGold Facility is an investment that allows Accredited Investors and their clients to accumulate gold via ad hoc lump sum contributions. A client’s contributions are credited to the client’s own segregated call account established with Nedbank Limited. The client earns preferential rates of interest on cash held in their call account. The client enjoys full title ownership of their gold bullion Krugerrands in their BullionGold Facility and therefore runs no credit risk as they would with a bank, unit trust or life company product. For the purposes of ensuring full transparency clients and advisors are provided with full online access to their call accounts so as to be able to review all cash contributions, charges and gold purchases.
Platform
With SA Bullion, Accredited Investors are able to offer their
clients a unique investment proposition: full title ownership of physical
gold bullion acquired and vaulted at wholesale prices. The SA Bullion
Investor Services Platform enables Accredited Investors to facilitate
client investments into physical gold bullion. Accredited Investors earn
initial fees and annual trail fees in respect of the intermediary function
they perform in the beneficiation chain.
PRODUCT PLATFORM FUNCTIONS
• 360 Degree client administration and service
• fee payments and reconciliations
• reporting
• service delivery
Online Functionality
SA Bullion is committed to providing transparency and accountability. The BullionGold Facility has two distinct components, namely, the cash portion which is managed in a segregated call account in the client’s own name with Nedbank, and the gold bullion portfolio which is physical gold bullion in the client’s own name with SA Bullion and vaulted at Rand Refinery Limited.
Nedbank Call Account:
As a Financial Service Provider you enjoy online access to your clients’ call accounts where you can view statements and scrutinize all cash movements in respect of all transactions related to the clients’ investments.
Gold Portfolio:
You receive an immediate transaction notification via email confirming the purchase or redemption of your clients’ gold bullion. You receive monthly statements reflecting the market value of your clients’ gold bullion holdings via email.
Introducer Fees:
All fees are allocated to your segregated Nedbank call account
which you authorise SA Bullion to establish on your behalf to be used as
your clearing account. You enjoy full online access to this call account. A
weekly commission run transfers your income from your clearing account to
your nominated account. In your Nedbank call account you earn
wholesale-money rates of interest on your accrued fees. An IT3(b)
certificate is issued to you annually in respect of interest earned.
International Distribution for Accredited Investors
Blue Mountains Global Limited (“Blue Mountains Global”) is authorized to promote the services of SA Bullion Investor Services outside the Republic of South Africa to accredited investors.
Blue Mountains Global holds a mandate to facilitate alliances with International Financial Service Providers and can be contacted for further information about how to access our unique BullionGold Facility for your clientele.
Contact Details:
Mr. Sune Hojgaard Sorensen
Tel: +27 21 447 3240
Fax: +27 865047857
solutions@bmglobality.com
www.bmglobality.com